Rush St. Gaming drops Millbury slots plan

Saturday

Sep 7, 2013 at 6:00 AMSep 7, 2013 at 10:39 PM

MILLBURY — In the gambling world, fortunes can change in an instant. Central Massachusetts' potential fortune changed sharply Friday when an affiliate of Chicago-based Rush Street Gaming, developer of a proposed $200 million slots parlor in Millbury, pulled out of a deal for a local casino for the second time in less than six months.

By Susan Spencer, TELEGRAM & GAZETTE STAFF

MILLBURY — In the gambling world, fortunes can change in an instant.

Central Massachusetts' potential fortune changed sharply Friday when an affiliate of Chicago-based Rush Street Gaming, developer of a proposed $200 million slots parlor in Millbury, pulled out of a deal for a local casino for the second time in less than six months.

A similar proposal for Worcester by the affiliate, Mass Gaming & Entertainment, fell apart in June.

Grass-roots opponents of the project slated for McCracken Road at Route 146, near the Shoppes at Blackstone Valley, were ecstatic late Friday about their David and Goliath-like victory over the billionaire developers.

"I actually cried because I couldn't believe we did it," said Lesa McWalters, president of No Slots in Millbury, as her voice choked with emotion on the phone. "I think that had a lot to do with our campaign. It made me happy."

Several No Slots activists gathered at the McWalters' home Friday night for a champagne toast.

The Millbury deal, which was headed Sept. 24 for a townwide referendum, was originally greeted with apparent enthusiasm by the community when it was unveiled at a Board of Selectmen's meeting July 9.

Under the host community agreement signed July 23, the developer would pay the town an initial fee of $500,000, with at least $3.25 million annually in taxes and mitigation payments.

But concerns from residents about traffic jams in an area already gridlocked by the mall and fears about increased crime and detrimental effects on property values quickly brought out an array of sign-holding, letter-writing, Facebook-active opponents.

No Slots in Millbury received additional support with signs and information from casino opponents in Tewksbury, where a slots proposal by Penn National Gaming was defeated recently at a special town meeting.

Further reinforcement came from Robert Steele, a former U.S. congressman from Connecticut and author of a novel based on the explosion of casino gambling in that state, who offered along with a Worcester mental health specialist to speak against the casino at a program scheduled for 7 p.m. Monday at the Elm Draught House.

Ms. McWalters said she assumed that Monday's program would be canceled.

A statement released by the developer Friday afternoon read:

"We think Millbury is a great community and we were impressed with the professionalism of the town officials and the enthusiasm we were welcomed with by so many," said Neil Bluhm, chairman of Mass Gaming & Entertainment.

"We spent a lot of time in Millbury and recently it became clear to us that a majority of residents do not support a casino. As we continued our outreach, we decided that for this particular project, we should move forward only if community support was overwhelming. It is not our style to campaign aggressively and win a referendum narrowly. We prefer to join together with our host community and build something collaboratively."

Former selectman Brian Stowell, who chaired Yes for Millbury, a pro-casino volunteer organization, said that when he received a phone call Friday from State Sen. Michael Moore, D-Millbury, informing him of Mass Gaming & Entertainment's action, "I was surprised at the least, as was the rest of the local team. I felt we did a great job."

While he said he was still in a bit of shock, he acknowledged, "Ultimately it was a business decision and there's nothing we can do about it now."

Mr. Stowell said he agreed with Rush Street Gaming's polling that showed the casino might win a majority at the townwide referendum, but it would be by a narrow margin.

"I am disappointed. I felt the town deserved at least a chance to be out there. I thought it would have been a great boost to the community," he said. "This was kind of tough because it was such a controversial industry."

Mr. Stowell said that the developers were great to work with and were respectful of the town. And he was pleased to see so many residents commit their time and energy to a civic issue, which he hoped would continue.

"The town manager, the Planning Board and the planner did a good job representing the town, from the host agreement, to working with Rush Street Gaming on traffic issues," he said.

Town Manager Robert J. Spain Jr. said in an interview Friday, "They just thought they were fighting an uphill battle. It would be a marginal victory at best."

He received a call from Mr. Bluhm, who is also the Rush Street Gaming chairman, and CEO Gregory Carlin midday, informing him of their decision.

"I'm still in favor of it, but I respect their decision," Mr. Spain said.

He said he hadn't told anyone out of his office until around 3 p.m., but word spread almost instantly through social media and the old-fashioned grapevine.

"The town needs money. I don't know where they're going to get it," Mr. Spain said.

"I make no bones about it: I'm disappointed. But clearly the town was split on it."

He said, "The biggest lesson learned was, there are a hell of a lot of people who don't want a casino in their town."

Mr. Spain said town officials were investigating whether they can cancel the Sept. 24 election.

"I'm disappointed but based on the way it was, with opposition in this town, it's probably a good thing," he said. "Things happen for a reason."

He hoped residents would resolve their differences and work together again.

The Cordish Co.s of Baltimore are still in contention for the state's sole slots casino license with a proposed project on Jungle Road in Leominster. That project is vying with Raynham Park and, once again, following Friday's vote by the state Gaming Commission to allow Penn National Gaming to take over the previously disqualified management, Plainridge Racecourse in Plainville.

Ms. McWalters said No Slots in Millbury had just received 150 new signs and 100 T-shirts it had planned to distribute, which read: Vote No Slots!

"We may just have to pass those along to the next town that doesn't want slots," she said.

Contact Susan Spencer at susan.spencer@telegram.com. Follow her on Twitter @SusanSpencerTG.